1.95 -0.1 (-4.88%) Sell

PARABDRUGS is a falling knife, continues to bleed every investor trying to catch it

14 min read

PARABDRUGS has destroyed investor wealth today. On a longer term basis, investors in PARABOLIC DRUGS LTD made -0.04% per day. Wednesday's performance of -4.88% was a underperformance compared to it's daily average.

[Themes containing PARABDRUGS]

Buy-and-Hold investors in PARABDRUGS experienced a maximum drawdown of -35.0% over the last three months. It fell by -31.58% during this strong bearish trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +22.22%.


PARABDRUGS has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 1 Jan, 2016 to 22 Jan, 2019. Over the last 3 years and 1 month, PARABDRUGS underperformed the NIFTY-50 index on 56% days.

PARABDRUGS returned losses on 68% days in the last three months. During this time, it delivered on average -0.57% per day. It delivered it's worst daily return of -4.88%, during this period, on Wednesday, 23 Jan, 2019. The longest stort-term trend during this period was 4 profitable days, which started on 26 Oct, 2018 and went on till 31 Oct, 2018. This bullish trend returned +8.84% to investors.

During the last year PARABDRUGS had 2 profitable months and 10 loss making months. PARABDRUGS returned profits in fewer months than NIFTY-50 index. PARABDRUGS was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Jan 2019, returned -25.0% compared to -6.42% returned by NIFTY-50 index in Sep 2018. PARABDRUGS had a longer winning streak of losing months than NIFTY-50 index. It went down in 5 straight months (from Mar 2018 to Jul 2018) during which period it delivered -91.95%.

You must gain control over your money or the lack of it will forever control you.
-- Dave Ramsey

PARABDRUGS is currently seeing overall fall in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant fall in PARABDRUGS's volatility from 24 Oct, 2018 to 30 Oct, 2018. While there was a significant fall in the NIFTY-50 index's volatility from 31 Oct, 2018 to 5 Dec, 2018.

Advanced/professional short-term investors should note that PARABDRUGS has significant negative skewness in it's return distribution. This indicates that PARABDRUGS is very risky for short-term investment and can significantly underperform for long durations.

NIFTY-50 index has more chance of extreme outcomes than PARABDRUGS. Therefore, NIFTY-50 must receive a lower allocation than PARABDRUGS in your portfolio. NIFTY-50 index usually has shorter drawdown period than PARABDRUGS.

Based on your interest in PARABDRUGS you may find it interesting to know that AMJLAND has delivered similar performance as PARABDRUGS and can be considered as an alternative investment candidate (to PARABDRUGS).

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
If you liked what you read here ...

... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.

All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.

We want to empower investors with all the tools and analysis required by them to make a rational investment decision.

If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute
Share with friends   WhatsApp   Facebook   Twitter